FSTA Fuller Smith & Turner Plc

 
 Fuller, Smith & Turner PLC (FSTA) 
Fuller, Smith & Turner PLC: Business Update and Trading Statement 
15-Nov-2019 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
15 November 2019 
 
                   Business Update and Trading Statement 
 
Fuller, Smith & Turner P.L.C. ("Fuller's" or "the Company"), the premium 
pubs and hotels business, today provides the following update. 
 
The business continues to trade well with total sales in our managed estate 
growing 5.2% and like for like sales growth of 2.3% for the 32 weeks to 9 
November 2019, against strong comparatives for the corresponding period last 
year albeit with some margin erosion due to industry wide cost pressures. 
 
As previously communicated, 2019 has been an unprecedented year of change 
for Fuller's following the disposal of the Brewing Business to Asahi; 
delivery of the Transitional Services Agreement ("TSA") associated with the 
sale; and migration to a new Enterprise Resource Planning system ("ERP"). 
 
As a result of the sale of the brewing business, underlying earnings of the 
retained business have been aligned accordingly and the vast majority of the 
central overheads reflecting Fuller's former integrated structure have been 
retained by the Company until the TSA agreement with Asahi comes to an end 
by May next year. 
 
Whilst it was not underestimated that this would be a period of significant 
transition for the business, the costs associated with carrying the central 
overhead previously allocated to the Beer Company have transpired to be 
materially higher than expected, with additional resource required to assist 
the business through this complex separation period. In part, this has been 
impacted further by the migration to a new ERP system which has not yet 
delivered the expected benefits and additional costs have been incurred 
operating the system as a result. 
 
It is anticipated that the current level of overhead will continue until the 
TSA agreement concludes by May 2020. Thereafter, the Company will be able to 
transition to a structure more appropriate for a focused premium pubs and 
hotels business. 
 
As a result of the above, it is anticipated that profit performance for the 
full year ending 28 March 2020 will be broadly in line with the prior year 
on a comparable basis, resulting in adjusted profit before tax in the region 
of GBP31m. 
 
Looking forward our strategy is clear and remains on track as we look to 
deliver our growth plans for the future as a focused premium pubs and hotels 
business. This has been evidenced most recently by our acquisition of 
Cotswold Inns and Hotels, comprising seven high quality, freehold country 
inns and hotels, together with two vibrant leasehold bars in Birmingham's 
city centre. 
 
A more detailed update and further guidance will be provided at the 
Company's Half Year results on 12 December 2019. 
 
Fuller's Chief Executive Simon Emeny said: 
 
"This is a transitional year for the Company following the sale of the 
brewing business and subsequent separation of a highly integrated business. 
There have been many moving parts to navigate and we have incurred some 
greater than anticipated costs as a result which have had a short term 
impact on our financial performance. Whilst we are taking the action to 
address these, the impact of this will not be felt in the current financial 
year. 
 
"Trading is good in light of exceptionally strong comparatives last year and 
the continued challenge of cost inflation facing our sector. Our strategy 
remains on track and we will continue to execute our growth ambitions and 
maximise the opportunities open to us as a focused pubs and hotel business." 
 
This announcement contains inside information and the person responsible for 
making this announcement on behalf of Fuller's is Adam Councell, Group 
Finance Director. 
 
For further information, please contact: 
 
Fuller, Smith & Turner P.LC. 
 
Simon Emeny, Chief Executive 020 8996 2000 
 
Adam Councell, Group Finance Director 020 8996 2000 
 
Georgina Wald, Corporate Comms Manager 020 8996 2198 / 07831 299801 
 
Instinctif Partners 
 
Justine Warren 020 7457 2020 
 
Notes to Editors: 
 
Fuller, Smith and Turner P.L.C. is a premium pub and hotel business. The 
Company runs 179 Tenanted pubs and 215 Managed Pubs and Hotels, with a focus 
on delicious fresh, home-cooked food, outstanding cask and craft ale, great 
wine and exceptional service. The Company also has 1028 boutique bedrooms in 
its Managed estate. The Fuller's pub estate stretches from Brighton to 
Birmingham and from Bristol to the Greenwich Peninsula, including 174 
locations within the M25. In June 2018 Fuller's acquired Bel & The Dragon, 
comprising six stunning country inns (included in the pub numbers above), 
and the Company also owns The Stable, a craft cider and gourmet pizza 
restaurant business, which has 16 sites in England and Wales. In April 2019, 
Fuller's sold its brewing division to Asahi Europe Ltd. The Company 
subsequently announced the acquisition of Cotswold Inns and Hotels last 
month, comprising a collection of seven high quality, freehold country inns 
and hotels in the Cotswolds, together with two vibrant leasehold bars in 
Birmingham's city centre. 
 
ISIN:           GB00B1YPC344 
Category Code:  TST 
TIDM:           FSTA 
OAM Categories: 2.2. Inside information 
Sequence No.:   29360 
EQS News ID:    913651 
 
End of Announcement EQS News Service 
 
 

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